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Chainlink (LINK) Price Breaks Out of Long-term Resistance, Here is the Next Target

The Chainlink (LINK) price has broken through long-term resistance level, signaling decisive bullish signals. It is expected to continue rising in the near future.

Long-Term Resistance Breakout

The price of Chainlink (LINK) initially declined after encountering long-term resistance at $18 during the week of December 4th to 10th, 2023 (indicated by the red arrow). However, the downward momentum failed to push the price below the crucial support level at $12.7, indicating strong buying interest from bulls during minor corrections as they anticipated another price surge.

Indeed, the LINK price broke above the $18 resistance level last week, marking the continuation of the uptrend since September 2023.

The weekly RSI (Relative Strength Index) supports the likelihood of further gains as it broke above the descending divergence trendline and is trending upward.

Therefore, there is a possibility that the LINK price will increase by an additional 50.63% toward the next long-term resistance level at $28.

LINK/USDT weekly chart . Source: TradingView

Short-Term Outlook

The daily chart reveals that the LINK price has been trading within the range of $13.3 to $17 since November 8, 2023. This indicates hesitation from both bulls and bears in determining the next trend.

However, this hesitation was resolved favorably for the bulls as LINK broke above this range on February 1, 2024.

The daily RSI has risen into overbought territory and is trending upward, suggesting that bulls have regained full control of the market.

Since this range has a target of $20.50, the LINK price could rise to this level in the next few days.

LINK/USDT daily chart . Source: TradingView

Conclusion

The most likely scenario indicates that the LINK price will continue to rise in the foreseeable future. The nearest target is $20.5, with potential further gains up to $27.

The bullish outlook would be invalidated if the price retraces back within the $13.3 to $17 range on the daily timeframe.

Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.

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